Why NYSE:MDC is a Top Pick for Dividend Investors.

Last update: Dec 18, 2023

MDC HOLDINGS INC (NYSE:MDC) has caught the attention of dividend investors as a stock worth considering. NYSE:MDC excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

A Closer Look at Dividend for NYSE:MDC

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:MDC earns a 8 out of 10:

With a Yearly Dividend Yield of 4.01%, MDC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.50, MDC pays a better dividend. On top of this MDC pays more dividend than 89.86% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, MDC pays a better dividend.
The dividend of MDC is nicely growing with an annual growth rate of 20.08%!
MDC has paid a dividend for at least 10 years, which is a reliable track record.
As MDC did not decrease their dividend in the past 5 years, we can say the dividend looks stable.

A Closer Look at Health for NYSE:MDC

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:MDC has achieved a 7 out of 10:

MDC has an Altman-Z score of 3.55. This indicates that MDC is financially healthy and has little risk of bankruptcy at the moment.
MDC has a debt to FCF ratio of 1.41. This is a very positive value and a sign of high solvency as it would only need 1.41 years to pay back of all of its debts.
MDC has a Debt to FCF ratio of 1.41. This is in the better half of the industry: MDC outperforms 65.22% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that MDC is not too dependend on debt financing.
A Current Ratio of 7.74 indicates that MDC has no problem at all paying its short term obligations.
MDC's Current ratio of 7.74 is amongst the best of the industry. MDC outperforms 86.96% of its industry peers.
A Quick Ratio of 2.40 indicates that MDC has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.40, MDC belongs to the top of the industry, outperforming 88.41% of the companies in the same industry.

Evaluating Profitability: NYSE:MDC

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:MDC was assigned a score of 6 for profitability:

MDC has a Return On Assets of 6.55%. This is in the better half of the industry: MDC outperforms 62.32% of its industry peers.
The last Return On Invested Capital (7.84%) for MDC is well below the 3 year average (12.36%), which needs to be investigated, but indicates that MDC had better years and this may not be a problem.
MDC has a better Profit Margin (7.46%) than 66.67% of its industry peers.
In the last couple of years the Profit Margin of MDC has grown nicely.
MDC's Operating Margin of 10.90% is fine compared to the rest of the industry. MDC outperforms 65.22% of its industry peers.
MDC's Operating Margin has improved in the last couple of years.
In the last couple of years the Gross Margin of MDC has grown nicely.

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Check the latest full fundamental report of MDC for a complete fundamental analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.